Stocks rallied sharply on Tuesday in response to strong earnings reports and President Obama's indication that lawmakers are closer to reaching an agreement on raising the debt ceiling. The Dow Jones industrial average gained 1.6%, its largest rise of 2011. Apple's third-quarter profit of $7.3 billion was more than double that of a year earlier, solidly beating Wall Street's estimates. Apple shares leapt 6.5% in after-hours trading. Yahoo!, however, saw its shares fall 3.7% in after-hours trading, after the search engine released second-quarter earnings that met Wall Street estimates, but also reported weakness in display and search revenue. The implied volatility remains at low levels.
Wednesday, July 20, 2011
Stocks rally on strong earnings and positive debt talks
Stocks rallied sharply on Tuesday in response to strong earnings reports and President Obama's indication that lawmakers are closer to reaching an agreement on raising the debt ceiling. The Dow Jones industrial average gained 1.6%, its largest rise of 2011. Apple's third-quarter profit of $7.3 billion was more than double that of a year earlier, solidly beating Wall Street's estimates. Apple shares leapt 6.5% in after-hours trading. Yahoo!, however, saw its shares fall 3.7% in after-hours trading, after the search engine released second-quarter earnings that met Wall Street estimates, but also reported weakness in display and search revenue. The implied volatility remains at low levels.
